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Hundreds of Atlanta-Based Delta Employees Thank U.S. Sen. Johnny Isakson, Rep. Tom Price and Rep. Lynn Westmoreland for Their Support of Pension Reform

Posted on: Monday, 25 July 2005, 15:01 CDT

ATLANTA, July 25 /PRNewswire-FirstCall/ -- Delta Air Lines employees today rallied to thank U.S. Sen. Johnny Isakson (R-Ga.) for his support of pension reform and for authoring S.861, the Employee Pension Preservation Act. He was joined by U.S. Rep. Tom Price (R-Ga.) and U.S. Rep. Lynn Westmoreland (R-Ga.), two of the nine members of the Georgia Congressional delegation who support similar legislation in the House.

"We are grateful to Sen. Isakson, Rep. Price and Rep. Westmoreland for their unwavering support of pension reform and their fight to make sure that airlines are able to preserve the pension benefits that employees have earned," said Jerry Grinstein, chief executive officer for Delta. "Delta employees and retirees wanted to show their appreciation to them for taking the time to listen to their constituents and understand the issues that affect their everyday lives."

Delta, its employees, retirees and the Air Line Pilots Association support pension reform bills introduced in April by Isakson and U.S. Sen. Jay Rockefeller (D-W.Va.) in the Senate and U.S. Rep. Tom Price (R-Ga.) in the House of Representatives. With this legislation, airlines would be given the ability to alter the payment time frame by paying their pension obligations to their employees over a 25-year period, using more stable, long-term assumptions. In return, airlines would agree to limit pension liabilities by freezing pension benefits and could choose to offer more manageable defined contribution plans, such as a 401(k).

"If Delta can make its pension payments, everybody benefits -- the employees, the company, the people of Atlanta and the American taxpayers. It's a win-win for all stakeholders," said Isakson. "Delta employees have spent years earning this pension, and I want to make sure they collect the benefits they have worked so hard to earn."

With a permanent solution, airline employees have a greater likelihood of receiving the full benefits they have already accrued.

"With this legislation, Delta can work to keep our benefit commitments to our employees while continuing to work toward a more competitive cost structure," Grinstein said. "The airlines are not asking for a financial bailout -- just more time to meet their pension obligations."

The federal government also benefits, as the bills would minimize the need for airlines to shift liabilities to the already over-burdened Pension Benefit Guaranty Corp. (PBGC). In addition, all taxpayers would be helped by this pension legislation, as the bills greatly decrease the chances of a taxpayer rescue of the PBGC.

Delta is also holding a Pension Reform Support Day in Cincinnati today to thank Rep. Geoff Davis for his support of H.R. 2106.

Delta Air Lines is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 484 destinations in 87 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at delta.com.

Delta Air Lines

CONTACT: Corporate Communications of Delta Air Lines, +1-404-715-2554

Web site: http://www.delta.com/

Source: PRNewswire-FirstCall

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